cost-benefit analysis

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Cost-benefit analysis

A method of evaluating projects or investments by comparing the present value or annual value of expected benefits to costs; the practical embodiment of discounted cash flow analysis; a useful technique for making transparent the benefits of upfront investments in sustainable design features or technologies.

cost-benefit analysis

a technique for appraising the total economic costs and benefits (and ideally the total social costs and benefits expressed as economic costs) arising from any economic and social activity, especially new projects. Hitherto, the technique has been mainly used to appraise new, large, public projects. But, in an increasingly ecologically conscious era, the proposal now is that many more existing economic and social activities should be subject to full cost-benefit analysis, with many more costs, e.g. environmental, also included to a fuller extent than previously Cost-benefit analysis is far from being a straightforward technique, however, and much depends on the assumptions on which a costing is made. Careful attention has always to be given to the range of external costs and the range of benefits to be included in the calculations, as well as to the basis on which these can be costed. The results usually leave scope for controversy.

cost-benefit analysis

An analysis of a construction contract with the objective of identifying all the included costs and evaluating their benefits.
References in periodicals archive ?
With the multinational corporation entered as a formal part of the analysis, one can see more clearly that the problem of labor outsourcing is actually a theoretically straightforward (if empirically difficult) application of benefit-cost analysis.
Traditional benefit-cost analysis would conclude that transgenic wheat should be introduced if the economic benefits outweigh the costs.
Graham taught benefit-cost analysis at Harvard where he also created and led the Harvard Center for Risk Analysis.
The results of a benefit-cost analysis can help inform discussions and debates, and can highlight whether certain asumptions, such as specific levels of increase in prison system safety and order, are realistic and sufficient to warrant the costs of building and supporting a supermax prison.
BENEFIT-COST ANALYSIS IN ENVIRONMENTAL, HEALTH, AND SAFETY REGULATION 4-8 (1996) (arguing that benefits and costs should be quantified wherever possible: agencies should be encouraged to use economic analysis to help set regulatory priorities, and such analyses should be subject to peer review both inside and outside government), available at http://aei-brookings.
A conservative benefit-cost analysis is obtained when the minimal applicable value is employed.
OMB Circular A-94, Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Programs, 29 Oct 92.
For the analysis of individual expansion projects, a benefit-cost analysis is a crucial component for determining whether an expansion is justified.
In the study, NIEER conducted a benefit-cost analysis of the Abecedarian Early Childhood Intervention project in North Carolina--which they note is one of the nation's most respected early education programs--by comparing data that had followed children who had participated in high-quality preschool with that of a control group who did not have the benefit of early intervention.
Benefit-cost analysis of social programs: Deinstitutionalization and education programs.
Economic Efficiency in Law and Economics explains and defends Zerbe's improved version of benefit-cost analysis, which is used to assess the anticipated economic effects of a change, such as new legislation, a precedent-breaking court ruling, or the breakup of a monopoly.
The adoption of water project/strategy economic evaluation criteria would ensure that consistent economic principles and benefit-cost analysis methods are applied in the development of state and regional plans.